Foreword Amid a landscape of exponential technological change, society is entering the Intelligent Age1 – an era defined by far more than technology alone. The Intelligent Age is characterized by a mass revolution transforming all aspects of society, and we’re already beginning to witness profound shifts. Alongside technological intelligence, environmental, social and geopolitical intelligence will be fundamental to success in this age. In this new era, industrial operations are being redefined. To better understand emerging opportunities and explore potential responses, the World Economic Forum – in collaboration with Boston Consulting Group (BCG) – launched the global initiative Frontier Technologies for Operations: AI and Beyond. Building on the success of our previous AI-Powered Industrial Operations initiative from 2022, this new scheme aims to equip manufacturers with the insights and tools necessary to shape the future of industrial operations in the Intelligent Age. It’s important to address two pressing questions – why focus on frontier technologies, and why now? The answer is simple yet profound – these innovations, like others in the Intelligent Age, drive boundary-breaking advancements that push the limits of what’s currently possible, facilitating collaborative intelligence and amplifying human ingenuity. In doing so, they provide competitive advantages and catalyse sustainable growth. Manufacturers that fail to fully harness the transformative power of frontier technologies in operations and supply chains will surely fall behind. Although the pursuit of frontier technologies is not novel, the stakes are now higher than ever. The challenges associated with identifying and evaluating these technologies and integrating them into long- term strategies have grown more complex as the pace of innovation accelerates. Forward-thinking industries, technology leaders and academic institutions are pioneering such advancements. Yet, even with the growing accessibility of tools like generative AI, manufacturers still face a crucial question – how will frontier technologies drive real, measurable impact in day-to-day operations? This white paper presents a bold yet actionable vision of one such frontier technology – AI agents. It additionally outlines methods by which this technology could be applied to create tangible value in industrial operations. The paper focuses on the transformative potential of two types of AI agents – virtual AI agents and embodied AI agents – and provides insights and case studies from leading industries while challenging conventional thinking and inspiring new strategies. Its aim is to highlight innovative perspectives to help manufacturers unlock the full potential of AI agents and spearhead operational transformation.Kiva Allgood Head, Centre for Advanced Manufacturing and Supply Chains; Member, Executive Committee, World Economic ForumDaniel Küpper Managing Director and Senior Partner, Boston Consulting Group (BCG) Frontier Technologies in Industrial Operations: The Rise of Artificial Intelligence Agents January 2025 Frontier Technologies in Industrial Operations 4

Frontier Technologies in Industrial Operations 2025